Jacobs (J) Q1 Earnings & Revenues Top Estimates, Shares Rise
Jacobs Engineering Group Inc. J reported first-quarter fiscal 2022 (ended Dec 30, 2022) results, with earnings and revenues surpassing their respective Zacks Consensus Estimate and rising year over year. The results reflect the company’s ability to capture high growth opportunities emerging across Climate Response, Data Solutions and Consulting & Advisory.
Shares of this construction and technical services company gained 1.1% following the earnings release on Feb 7, 2023.
Looking into fiscal 2023 and beyond, Jacobs' president and CFO Kevin Berryman added, "We delivered solid first quarter results with double-digit revenue growth, strong profitability performance and robust cash flow generation. The profitability mix within our revenue backlog improved in Q1, which positions us well to achieve our fiscal year 2023 outlook. We continue to expect strong demand across our diverse portfolio of solutions with the ability to drive further earnings per share growth by prudently deploying capital."
Jacobs Solutions Inc. Price, Consensus and EPS Surprise
Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote
Earnings & Revenue Discussion
For the reported quarter, adjusted earnings of $1.67 per share topped the consensus estimate of $1.61. Also, the reported figure was up 7% from the year-ago period.
Jacobs’ revenues totaled $3.8 billion, topped the consensus mark of $3.62 billion and grew 7.7% year over year. Revenues were up 12% year over year in constant currency.
Backlog at the end of first-quarter fiscal 2023 amounted to $28.3 billion, up 1% from a year ago.
Revenues from the Critical Mission Solutions or CMS segment of $1.08 billion increased 10.1% year over year. Yet, the segment operating profit of $82.2 million was down from $91.2 million reported a year ago. The backlog at the fiscal first-quarter end was $7.63 billion, slightly up from $7.53 billion a year ago.
Revenues from the People & Places Solutions or P&PS segment totaled $2.23 billion, which inched up 15.8% year over year. Net revenues (excluding Pass Through Revenue) were up 8.2% year over year. Segment operating profit grew 20% from the prior-year quarter to $226.6 million. The backlog at the quarter end was $17.2 billion, up from $16.93 billion a year ago.
Revenues from the Divergent Solutions segment totaled $214.5 million, which grew 11.2% year over year. Divergent Solutions net revenues were up 3% year over year. Segment operating profit declined 48.2% from the prior-year quarter to $12 million. The backlog at the quarter-end was $3.08 billion, down from $3.28 billion a year ago.
PA Consulting generated $282 million in revenues in the fiscal first quarter, down from the year-ago quarter’s figure of $290 million. Segment operating profit was $51 million, down from $63.1 million a year ago. Quarter-end backlog amounted to $306 million, up from $276 million a year ago.
Total segment operating profit grew to $371.8 million from $366.3 million a year ago.
Balance Sheet & Cash Flow
At the fiscal first-quarter end, Jacobs had cash and cash equivalents of $1,211.1 million, up from $1,140.5 million at the fiscal 2022-end (Sep 30, 2022). Long-term debt increased to $3.43 billion at the fiscal first-quarter end from $3.36 billion at the fiscal 2022-end.
Net cash provided by operating activities totaled $302.3 million in the quarter compared with $321.6 million in the year-ago quarter.
Fiscal 2023 Guidance Maintained
Meanwhile, based on recent FX rates, Jacobs still expects adjusted EBITDA between $1,400 million and $1,480 million and adjusted earnings within $7.20-$7.50 per share (up 6% both at the midpoints).
The Zacks Consensus Estimate for the company’s fiscal 2023 earnings is currently pegged at $7.36 per share.
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Recent Releases
Weyerhaeuser Company WY reported fourth-quarter 2022 results, wherein its earnings beat the Zacks Consensus Estimate, and the same declined from the year-ago period's levels. The quarter’s performance reflects strong execution across the businesses, which was offset by macroeconomic headwinds, supply-chain disruptions and dynamic market conditions.
On an impressive note, WY unveiled a 90 cents per share supplemental dividend. The company also increased its base dividend by 5.9%, repurchased $550 million in shares and refinanced $900 million of debt.
Fastenal Company FAST reported fourth-quarter 2022 results, wherein earnings and revenues topped the Zacks Consensus Estimate.
FAST’s top and bottom lines also improved on a year-over-year basis, given the strong demand in markets associated with industrial capital goods and commodities amid inflation for products, particularly fasteners and transportation services.
United Rentals, Inc. URI reported fourth-quarter 2022 results. Its earnings and revenues missed the Zacks Consensus Estimate but increased on a year-over-year basis on the back of sustained demand in its end markets and the strength of its core rental business.
URI provided solid full-year 2023 guidance for total revenues and adjusted EBITDA, given broad-based end-market activity, contractor backlogs, customer sentiment and solid visibility. Also, it unveiled a quarterly dividend of $1.48 per share, with an annualized yield of approximately 1.5%. The company also plans to restart its share repurchase program, with the intention of buying back $1 billion of common stock in 2023.
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